Senior High School

Chapter 1
NATURE AND
CONCEPT OF
MANAGEMENT
for Grade 11
Organization and Management

SELF-LEARNING KIT
 First Semester
Module No. 1
LESSON 1: Definition, Functions, Types and Theories of Management

OBJECTIVES
1. Discuss the meaning and functions of management
2. Explain the various types of management theories

LEARNING COMPETENCY
1. Explain the meaning, functions, types and theories of management

I. TRY ME!

A. Who Am I?
List down your ideas about the meaning of the term management.

1. _______________________________
2. ____________________________
MANAGEMENT 3. ____________________________
4. ____________________________
5. ____________________________

B. Matching Type.
Match column A with column B. Write the letter of your answer before the number.
Column A Column B
___ 1. It is considered as a set of planning, organizing, A. Behavioral Management
training, commanding and coordinating functions. Theory
___ 2. In this theory, there should be a system of rules, B. Bureaucratic Theory
standard operating procedures and norms for the
employees to know how they should behave in the C. Contingency Perspective
workplace.
___ 3. It aimed to find ways to reduce the time a worker
D. Controlling
spent to accomplish a task.
___ 4. It concerns on how the manager deals with his
E. Leading
subordinates for them to be motivated to do their job.
___ 5. It delegates tasks to the employees to get the
F. Management
work done.
___ 6. It is assigned to facilitate programs to train
G. Organizing
employees.
___ 7. It influences the people to perform specific tasks
H. Planning
to achieve objectives.
___ 8. It is a management philosophy that focuses on
I. Scientific Management
the satisfaction of customers, their needs, and Theory
expectations
___ 9. It makes sure that the tasks are performed well to
J. Staffing
achieve the goals set
___ 10. It is deciding in advance- what to do, when to do K. Total Quality
and how to do. Management
C. Am I Good in Planning?
Give what is asked.

Rubric Categories:
Clarity of thought - 2 points
Appropriate or Realistic answer - 2 points

1. Plan an event.
2. Complete the template.
Guide: > What - list the activities for the event
> When - schedule or deadline for completion of activity
> Where - location for the activity and/or supplier for the activity
> Who - person/s in charge or group assigned for the activity
> How - required resources for the activity, e.g. vehicle, chairs
> How much - estimated budget for the event

Name of Event

What

When

Where

Who

How

How much
II. LESSON PROPER

Meaning and Characteristics of Management

Management is the process of coordinating and overseeing the work performance of

individuals working together in organizations, so that they effectively accomplish their
chosen aims/goals.

Management is the process of reaching organizational goals by working with and

through people and other organizational resources and has the following characteristics:
1. It is a process or series of continuous and related activities.
2. It involves and concentrates on reaching organizational goals.
3. It strives for organizational goals by working with and through people and other
organizational resources.

A. Self-check.
Answer briefly and comprehensively.

1. In your own words, what is management?

Answer:
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2. As an individual, how would you best apply these characteristics of management at

home?

Answer:
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__________________________________________
Managerial Functions

Management analysis is done by breaking it down into five major managerial duties;
thus, making managerial knowledge more understandable. Management functions
include the following:

Planning
It is the determining of the organization’s goals, defining strategic actions to
accomplish them, developing coordination/integration activities, and allocating
appropriate organizational resources needed to achieve them.
It involves choosing tasks that must be performed to attain organizational goals, to
outline how the tasks must be performed and to indicate when they should be performed.
Planning activity focuses on attaining goals and managers outline exactly what
organizations should do to be successful. It is also concerned with the success of the
organization in the short term as well as in the long term.

Organizing
It is the assigning of tasks, setting apart of funds, and bringing harmonious relations
among the individuals and work groups/teams in the organization.
It involves the act of assigning the tasks developed in the planning stages to various
individuals or groups to create a mechanism to put plans into action.
People within the organization are given work assignments that contribute to the goals
of the company to make the outputs of each individual contribute to division and
organizational success.

Staffing
It indicates filling in the different job positions in the organization’s structure; the
factors that influence this function include size of the organization, types of jobs, number
of individuals to be recruited, and some internal and external pressures.
It involves the process of recruiting, selecting, and training employees.

Leading
It is the influencing/motivating of others to do their best so that their work efforts result
in the achievement of organizational goals.
It is also known as directing, influencing or motivating by guiding the activities of
organization members towards the fulfillment of the goals.
Its purpose is to increase productivity in human-oriented work situations to generate
higher levels of production over the long term than do task oriented work situations.

Controlling
It involves the evaluating and correcting, if necessary, of the work performance of
individuals or work groups/teams in order to make sure that they are all working towards
the previously set goals and plans of the organization.
It is both a managerial function and a continuous process where the manager
performs the following roles:
- gathers information that measures performance;
- compares present performance to pre-established performance norms; and
- determines the next action plan and modifications for meeting the desired
performance parameters.
Coordination, Efficiency, and Effectiveness:
Intrinsic to the Nature of Management

Management functions -- planning, organizing, staffing, leading, and controlling --

will all go to waste if coordination, efficiency, and effectiveness are not practiced by an
organization’s appointed managers. In other words, top-level managers, middle-level
managers, and team leaders or supervisors must all be conscious of the said practices
of successful organizations as they perform management functions.
Webster’s Dictionary defines coordination as the harmonious, integrated action of the
various parts and processes of an organization; efficiency is being able to yield the
maximum output from a minimum amount of input; and effectiveness as being adopted
to produce an effect, or being able to do things correctly. When applied to management
functions, coordination ensures that all individuals, groups, or teams are harmoniously
working together and moving toward the accomplishment of the organization’s vision,
mission, goals, and objectives; efficiency, meanwhile, refers to the optimal use of scarce
resources -- human, financial, physical, and mechanical -- in order to bring maximum
productivity; and effectiveness means “doing things correctly” when engaged in activities
that will help the organization attain its aims.

B. Self-check.
Answer briefly and comprehensively.

1. How do the functions of management differ from each other?

Answer:
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2. What function/s should be emphasized? Explain.

Answer:
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Evolution of Managerial Theories

Evolution is defined as slow stages of growth and development, starting from simple
forms to more complex forms. This, too, could be applied to management theories which
have evolved from simple improvement of work methods to more complex ones which
focus not only on work method improvement, but also on customer satisfaction and the
conduct of people at work.

Studying the evolution of management theories will help you understand the
beginnings of present-day management practices; why some are still popular and why
others are no longer in use; and why the expansion and development of these theories
are necessary in order to adapt to the changing times. Management theories include the
following:

Scientific Management Theory

This management theory makes use of the step by step, scientific method for finding
the single best way for doing a job. Frederick W. Taylor (1856-1915) is know as the Father
of Scientific Management Theory. While working as a mechanical engineer in a steel
company in Pennsylvania in the United States of America (USA), he could not help but
notice the workers’ mistakes and inefficiencies in doing their routine jobs. Their lack of
enthusiasm, the discrepancy between their abilities and aptitudes, and their job
assignments result to low output. Because of these observations, he tried to identify clear
guidelines for the improvement of their productivity.
Taylor’s Scientific Management Principles (Robbins and Coulter, 2009) are as
follows:
1. develop a science for each element of an individual’s work to replace the old rule of
thumb method;
2. scientifically select and then train, teach, and develop the workers;
3. heartily cooperate with the workers so as to ensure that all work is done in accordance
with the principles of the science that has been developed; and
4. divide work and responsibility almost equally between management and workers.

General Administrative Theory

The General Administrative Theory concentrates on the manager’s functions and

what makes up good management practice or implementation. Henry Fayol (1841-1925)
and Max Weber (1864-1920) are the personalities most commonly associated with it.
Fayol’s 19th century writings were concerned with managerial activities which he based
on his actual experience as a managing director in a big coal mining company. He
believed that management is an activity that all organizations must practice and viewed
it as separate from all other organizational activities such as marketing, finance, research
and development, and others. Weber, a German sociologist wrote in the early 1900s that
ideal organizations, especially large ones, must have authority structures and
coordination with others based on what he referred to as bureaucracy. Present-day
organizations still make use of Weber’s structural design.
 Henry Fayol’s Management Weber’s Bureaucracy
Principles
1. Work division or
specialization
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction According to Weber, bureaucracy is
6. Subordination of individual an organizational form distinguished
interest to generate interest by the following components:
● Division of labor
7. Remuneration/pay
● Hierarchical identification of job
8. Centralization
positions
9. Scalar chain of authority ● Detailed rules and regulations
10. Maintenance of order ● Impersonal connections with
11. Equity/fairness one another
12. Stability/security of tenure of
workers
13. Employee initiative
14. Promotion of team spirit or
esprit de corps
Table 1.1
Fayol’s and Weber’s contributions to General Administrative Theory

Organizational Behavior (OB) Approach

The Organizational Behavior (OB) approach involves the study of the conduct,
demeanor, or action of people at work. Research on behavior helps managers carry out
their functions -- leading, team building, resolving conflict, and others. Robert Owen, Mary
Parker Follett, Hugo Munsterberg, and Chester Barnard were the early supporters of the
OB approach. During the late 1700s, Owen noticed lamentable conditions in workplaces
and proposed ideal ways to improve the said conditions. Follett, in the early 1900s,
introduced the idea that individual or group behavior must be considered in organizational
management. Likewise, in the early 1900s, Munsterberg proposed the administering of
psychological tests for the selection of would-be employees in companies. Barnard, in the
1930s, suggested that cooperation is required in organizations since it is, mainly, a social
system.

Total Quality Management (TQM)

Total Quality Management is a management philosophy that focuses on the

satisfaction of customers, their needs, and expectations. Quality experts W. Edwards
Deming (1900-1993) and Joseph M. Juran (1904-2008) introduced this customer-
oriented idea in the 1950s; however, the concept had few supporters. The Americans did
not immediately take to the idea since the US was enjoying supremacy in the global
market at that time. Japanese manufacturers, on the other hand, took notice of it and
enthusiastically experimented on its application. When Japanese firms began to be
recognized for their quality products, Western managers were forced to give a more
serious consideration of Deming’s and Juran’s modern management philosophy that
eventually became the foundation of today’s quality management practices.
 Deming’s 14 Points for Top
Juran’s Fitness of Quality
Management
1. Create constancy of purpose 1. Quality of Design - through market
for improvement of products and research, product, and concept
services.
2. Adopt the new TQM 2. Quality of Conformance - through
philosophy. management, manpower, and technology
3. Cease dependence on mass 3. Availability - through reliability,
inspection by doing things right and maintainability, and logistic support
doing it right the first time.
4. End the practice of awarding 4. Full service - through promptness,
business on the basis of price tag competence, and integrity
alone.
5. Constantly improve the
Juran’s Quality Planning Roadmap
system of production and services.
6. Institute training. 1. Identify your customers.
7. Adopt and institute 2. Determine their needs.
leadership.
8. Drive out fear. 3. Translate them into one’s language.
9. Break down barriers 4. Develop and product that can respond to
between staff areas needs.
10. Eliminate slogans, focus on 5. Develop processes which are able to
correction of defects in the system. produce those product features.
11. Eliminate numerical quota 6. Prove that the process can produce the
for the work force. product.
12. Remove the barriers that rob 7. Transfer the resulting plans to the
people of “pride of workmanship.” operating forces.
13. Encourage education and
self-improvement for everyone.
14. Take action to accomplish
the transformation.
Table 1.2
TQM Pointers from Deming and Juran (Ramasamy 2009)

C. Self-check. Answer briefly and comprehensively.

1. Who is considered to be the Father of Scientific Management? Briefly enumerate

his contributions to scientific management.

Answer:
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2. In your opinion, who among the management theorists discussed had the best
contribution to management practices? Explain your answer.

Answer:
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III. ASSESS WHAT YOU HAVE LEARNED

A. Choose the letter of your answer that is best described in the given statements.
(10 points)

A. Planning B. Organizing C. Staffing D. Leading E. Controlling

_____ 1. It is deciding in advance- what to do, when to do and how to do.

_____ 2. Its purpose is to ensure that everything occurs to conform with the standards.
_____ 3. Its purpose is to put the right man on the right job.
_____ 4. It involves delegation of authority and creation of responsibility.
_____ 5. It is assigned to facilitate programs to train employees.
_____ 6. It allocates or provides resources (i.e. raw materials, tools, capital, and
personnel) to be used for the business to operate and function well.
_____ 7. Setting of goals occurs in this function.
_____ 8. It influences the people to perform specific tasks to achieve objectives.
_____ 9. It makes sure that the tasks are performed well to achieve the goals set.
_____ 10. Its elements are supervision, motivation, leadership and communication.

B. Essay. Answer briefly and comprehensively.

Rubric categories:
Clarity of Ideas - 5 points
Appropriateness - 5 points
Total - 10 points

Think of a most difficult task which you, as a student, must accomplish. What are
the steps needed to complete the said task? Will the management theories discussed
earlier help you to be more efficient in completing the task? Explain your answer.

Answer:
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 GLOSSARY

Coordination - harmonious, integrated action of the various parts and processes of an

organization

Efficiency - the character of being able to yield the maximum output from a minimum
amount of input

Effectiveness - being adapted to produce an effect that will help the organization attain
its aims

Management Functions - functions needed in order to accomplish the management

process of coordinating and overseeing the work performance of individuals working
together in organizations

Management Process - the coordinating and overseeing of the work performance of

individuals working together in organizations so that they could efficiently and effectively
accomplish their chosen goals

Management Theories - theories that help improve management process

REFERENCES

Cabrera, H. M. F., Altarejos, A. DC. & Benjamin R. (2016). Organization and

Management Teacher’s Manual for Senior High School. Quezon City: Vibal
Group Inc.

Cabrera, H. M. F., Altarejos, A. DC. & Benjamin R. (2016). Organization and

Management Textbook for Senior High School. Quezon City: Vibal Group Inc.

DepEd Activity Scheets 2016

Orjalo, V. G., Frias, S. A. & Pefianco, E. C. (2016). Organization and Management:

Concepts, Caselets, and Exercises. Quezon City: The Phoenix Publishing House
Inc.

Prepared by:

Charmine I. Sayawan
Teacher